Sign Up

Sign Up to our social questions and Answers Engine to ask questions, answer people's questions, and connect with other people.

Have an account? Sign In
Continue with Facebook
Continue with Google
or use

Have an account? Sign In Now

Sign In

Continue with Facebook
Continue with Google
or use

Forgot Password?

Don't have account, Sign Up Here

Forgot Password

Lost your password? Please enter your email address. You will receive a link and will create a new password via email.

Have an account? Sign In Now

Sorry, you do not have a permission to ask a question, You must login to ask question.

Continue with Facebook
Continue with Google
or use

Forgot Password?

Need An Account, Sign Up Here

Please briefly explain why you feel this question should be reported.

Please briefly explain why you feel this answer should be reported.

Please briefly explain why you feel this user should be reported.

Sign InSign Up

Ansfind

Ansfind Logo Ansfind Logo Ansfind Logo Ansfind Logo
Add question

Ansfind Navigation

  • About Us
  • Groups
    • Add group
Search
Add Question

Mobile menu

Close
Ask a Question
  • Home
  • Communities
  • Questions
    • New Questions
    • Trending Questions
    • Hot Questions
  • Polls
  • Tags
  • Points
  • Users
  • FAQs
  • Help
  • Contact Us
Home/ Questions/Q 11235
In Process
Anonymous
Anonymous.
Asked: October 8, 20212021-10-08T08:59:16+05:30 2021-10-08T08:59:16+05:30

What you need to know about the legal implications of running a business?

What you need to know about the legal implications of running a business?

businesslegal
  • 0
  • 11
  • 11
  • 0
  • Share
    • Share on Facebook
    • Share on Twitter
    • Share on LinkedIn
    • Share on WhatsApp
Answer
  • Report

1 Answer

  • Voted
  • Oldest
  • Recent
  1. Weboptify
    2021-10-08T09:46:50+05:30Added an answer on October 8, 2021 at 9:46 am

    Running a business is not only about having the knowledge and idea to start it, but also involves procedures such as registering your activities with the relevant authorities or preparing legal documents. It is important for you to be aware of the potential legal implications involved in running a business before starting off on this journey.

    As a newly-launched startup, it is crucial for you to be up-to-date with current affairs in the legal world so that you do not get caught unaware and face fierce competition from your competitors. Incorrectly drafted contracts could have a serious effect on your business, so it is obviously best to consult a qualified attorney who will guide you through the process of running a business.

    First, we have compiled a list of common legal implications involved in running your own business. Second, our featured attorney has provided valuable insight on how to reduce the risk of breaking any laws while running your business. Let’s get started!

    You are responsible for all aspects of the business operation, including its liabilities and compliance with law. This means you must register and follow all necessary procedures and pay all relevant fees (taxes, accounting etc.). You must also make sure that every person working for you is qualified to do so and does not engage in activities which could lead to conflict of interest with your company. The consequences may include mandated sales disgorgement or dissolution of operating entity. A further aspect involves the protection of your business name.

    If you plan on running a business, it is important that you know what type of entity is right for your business. For many entrepreneurs, undercapitalization may be an issue; this means that they do not have sufficient capital to start their businesses (i.e., money, property etc.). With limited funds at hand, they often choose to operate as sole proprietors . This single-owner model provides only the owner personal liability for all debts and obligations related to his or her company’s operations. On the other hand, incorporation (via formation of an LLC, corporation etc.) limits the personal liability of its owners (shareholders/members) by separating them from the entity itself. If you plan on running a business that carries substantial risk (e.g., restaurant, car service etc.) and is likely to face considerable liability, we recommend that you seek professional advice before incorporating your entity.

    When operating a business, it is compulsory for you to maintain certain documents such as bank account statements and records of payment transactions (invoices). Any legal action brought against your company will require such documentation in order to prove your case. It may be difficult to provide evidence of operations without written proof; this could weaken your position in the courts. Thus, we suggest keeping copies of all receipts and invoices with date, amount and description clearly stated. You can also consider using an accounting software or app which provides similar information in an easy-to-understand manner. Having record of these documents will not only prove helpful in case of litigation, but may also provide you with information about your company’s financial status.

    Contracts are legal agreements between two or more parties which result in the creation, modification, transfer etc. of rights and obligations. Contracts can be oral or written; certain types of contracts must be written to be legally valid (e.g., sale of land). Additionally, contracts that contain terms imposing greater restrictions on consumers are subject to special requirements (e.g., consumer leases over $25,000) . For commercial entities providing services to other businesses (B2B), business contracts often include non-compete clauses which prevent either party from entering the same market for a given period of time. The consequences of non-compliance include tens of thousands in statutory damages and restitution. However, we recommend that you seek legal advice before incorporating such terms into your business contracts as they may not be legally enforceable. In addition to general contract requirements, certain types of agreements must be filed before your local county clerk’s office or state department (e.g., licensing deal between manufacturer and retailer).

    In order to run a successful business, you must make sure it is insured against potential risks involved with its operations . For example, if you own a restaurant, fire insurance will cover costs resulting from a kitchen fire. You need to maintain proper coverage which includes all assets owned by the company as well as contingent liabilities that may arise during company’s operations. There are several types of insurance available to protect your business depending on your specific needs. We suggest consulting with an insurance broker who deals with commercial policies as they will be most knowledgeable about the risks involved in your company’s line of work .

    If you plan on starting a business, it is important that you know how to protect yourself from potential risks. Before coming up with a concept for your product or service, you should consult professionals (e.g., lawyers, accountants etc.) and seek advice which will help make important decisions such as what type of entity should operate your business (e.g., LLC, corporation etc.). In addition to knowing the, we recommend familiarizing yourself with certain key legal terms and consulting with professionals in various fields (e.g., real estate, insurance) to ensure you are adequately protected before making any final decisions.

    • 0
    • Reply
    • Share
      Share
      • Share on Facebook
      • Share on Twitter
      • Share on LinkedIn
      • Share on WhatsApp
      • Report
Leave an answer

Leave an answer
Cancel reply

Choose from here the video type.

Put Video ID here: https://www.youtube.com/watch?v=sdUUx5FdySs Ex: "sdUUx5FdySs".

Related Questions

  • What is the problem you face to grow your business online?
  • Which statement describes the information within a story?
  • How can trust be gained between the business and development?
  • The question is, are you willing to do what it takes to start an online business?
  • Why profit maximization requires mr=mc?
  • Which profit is transferred to capital reserve?
  • When profit and loss account is prepared?
  • When profit maximizing what is this firm's profit?
  • Can profit be higher than revenue?
  • Are profit and net income the same?

Sidebar

Top Users

Janeclarizz Belmores

Janeclarizz Belmores

  • 3,722 Points
SaRa

SaRa

  • 3,388 Points
Professor
Wish Lay

Wish Lay

  • 2,609 Points

Adv 250x250

  • About Us
  • Home
  • Communities
  • Tags
  • Points
  • Users
  • Help
  • Contact Us
  • Referrals
  • Policies
    • Privacy policy
    • Terms of use
Revenue

© 2023 Ansfind. | Designed by Weboptify

monetization_on Earn home Home
search Search
help Add

Insert/edit link

Enter the destination URL

Or link to existing content

    No search term specified. Showing recent items. Search or use up and down arrow keys to select an item.